The eat-at-home trend isn’t going anywhere, to the lasting benefit of American food companies.
That was the main takeaway Thursday from two giants of the industry—
But beneath the surface there were also signs that continued innovation to keep up with health and wellness trends remains important.
Both companies reported quarterly earnings that were well ahead of expectations. Pepsi said organic sales, which strip out acquisition and currency impacts, rose 6% from a year earlier in North America for both its Frito-Lay and Quaker Food divisions. More surprising was that its North America beverage business, which has been dragged down by weak out-of-home sales, scored a 3% organic revenue increase on the back of price increases. That compares with a 7% decline the prior quarter.
Conagra did even better. Its grocery and snacks division, which includes Hunt’s tomato sauce, Vlasic pickles,